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Recession could damage sector's independence, Commission for Compact warns

Charities less likely to challenge government when competing for dwindling funds

The recession could compromise the independence of third sector organisations as they chase spiralling levels of government funding, the Commission for the Compact has warned.

In a discussion paper considering the possible effects of the recession on the sector and the Compact, the commission warns that "increased competition for government funding may have a negative effect on the independence of third sector organisations".

The paper says: "One risk is that third sector organisations feel less comfortable challenging government, for fear they may be less likely to receive much-needed government funding."

The paper also warns that high demand for cash from the Government's £40.5m action plan means there could be "difficulties ensuring the funding goes where it is needed and is allocated fairly".

But the implementation of the Compact, the agreement that sets out how public and third sector organisations should treat each other, could be improved through the easier recruitment of high-calibre workers, made available by increased levels of unemployment, the paper says.

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